Diesel EN590 Procurement: How to Buy Without Being Defrauded

EN590 is the most requested refined product in the fraud-prone corner of the oil market. Buyers want it because the demand is real and the volumes are large. Fraudsters advertise it for the same reason. If you are buying diesel in cargo quantities, the process you follow before money moves matters more than the price you are quoted.

This guide covers the four decisions that separate a completed delivery from a lost deposit.

1. Know who you are really dealing with: refinery, trader or intermediary

Most “sellers” offering EN590 are not refineries. They are traders, or intermediaries passing along an offer they have not secured. That is not automatically a problem. It becomes one when the chain is hidden.

  • Refinery or producer: sells under its own term contract, usually to established buyers with credit and a history. It rarely sends unsolicited offers by email.
  • Trader or portfolio holder: buys and resells. It should be able to show the product, the storage or vessel, and its own supply contract.
  • Intermediary or “mandate”: claims authority to sell someone else’s product. Each layer adds commission and risk, and the real owner is often unknown.

Ask directly: who owns the product today, where is it, and who is the title holder at loading? A seller who cannot answer in writing is not ready to sell.

2. Verify the seller independently

Never rely on documents the seller supplies as proof of itself. Follow the process in our step-by-step seller verification guide, and at minimum:

  1. Pull the company registration from the public registry yourself.
  2. Confirm the person you are talking to is an authorised signatory.
  3. Verify the bank through the bank, using a number you found yourself, not one on the letterhead.
  4. Check the terminal or storage facility directly with its operator.

Be especially wary of the scripted pushback described in The Mandate Defense Script. If you are working through a broker, use our 6-point broker checklist first.

3. Insist on independent inspection

Quality and quantity must be confirmed by a third party that neither side controls. The recognised inspection companies include SGS, Saybolt, Intertek and Bureau Veritas.

  • Appoint the inspector yourself, or jointly. An inspection report supplied by the seller is a document, not a verification.
  • Confirm the report with the inspector using contact details you source independently.
  • Check the specification: EN590 sets limits for sulphur (10 mg/kg maximum), cetane number, density, flash point and cold-flow properties. Ask which grade (for example Class A to F, or Arctic) applies, because the cold-flow grade depends on season and destination.
  • Inspect at loading and discharge where the contract allows, with the quantity basis (shore tank or vessel) stated.

Also agree the delivery terms precisely. Our guide to FOB vs CIF explains how risk and cost transfer, and the same logic applies to refined product.

4. Use payment instruments that protect you

Fraud usually ends at the payment step. Be cautious about any structure that asks you to pay before product is verified.

  • Documentary letter of credit (LC): issued by a bank with real credit standing, payable against presentation of documents, including the inspection certificate. This is the standard protection for buyers.
  • Standby LC or bank-backed instruments: acceptable when issued and confirmed through bank-to-bank channels you can verify.
  • Warning signs: “refundable” fees, demands for a processing, escrow or “performance” payment up front, or a request to pay a private account or an unrelated third party.

Treat proof-of-product documents with the same caution. See Proof of Product in oil trading: what is real and what is a scam.

5. Red flags specific to EN590 offers

  • Pricing well below the current market, with urgency attached
  • A “rolling” or repeating cargo programme with no named vessel or terminal
  • Reluctance to allow independent inspection or terminal contact
  • Requests for your bank details or proof of funds before they have shown anything
  • Documents that do not agree with each other on names, dates or quantities

For a fuller list, read 5 Red Flags in Petroleum Deal Documents.

The bottom line

Real EN590 cargoes can be bought safely. The pattern is consistent: a verified owner, independent inspection, a bank-backed payment instrument tied to documents, and no payment ahead of proof. If any of the four is missing, stop.

Need a second set of eyes on an EN590 offer? BarrelBridge reviews counterparties, documents and deal structure for buyers before they commit. Contact us to talk through the offer you are considering.